BILL NUMBER: AB 1855	CHAPTERED  09/27/00

	CHAPTER   756
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 26, 2000
	PASSED THE ASSEMBLY   AUGUST 25, 2000
	PASSED THE SENATE   AUGUST 24, 2000
	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN SENATE   JULY 3, 2000

INTRODUCED BY   Assembly Members Lowenthal and Torlakson
   (Coauthor:  Senator Rainey)

                        FEBRUARY 7, 2000

   An act to amend Section 33334.2 of, and to amend and repeal
Section 33413 of, the Health and Safety Code, relating to
redevelopment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1855, Lowenthal.  Redevelopment.
   (1) The Community Redevelopment Law requires redevelopment
agencies to use not less than 20% of taxes allocated to the agency
for low- and moderate-income housing, as specified.  These funds may
be used outside of the project area upon a finding by the agency and
the legislative body of the community that it will benefit the
project area.
   This bill would expressly authorize the Contra Costa County
Redevelopment Agency to use these funds outside of a project area
only upon a resolution by the agency and the board of supervisors,
anywhere within county boundaries, including within the incorporated
limits of the City of Walnut Creek, determining that it will benefit
the project area.  In addition, the agency may only use these funds
within the incorporated limits of the City of Walnut Creek if the
agency and the board of supervisors make specified findings and the
agency complies with certain requirements.
   (2) The Community Redevelopment Law, until January 1, 2001,
requires that when dwelling units housing persons and families of low
or moderate income are destroyed or removed from the housing market
as part of a redevelopment project, an equal number of replacement
units shall be rehabilitated, developed, or constructed, as
specified.  That law sets forth numerous duties of the redevelopment
agency with respect to these replacement units, including the
responsibilities of the agency regarding long-term affordability
standards, and contains alternate provisions, to become effective on
January 1, 2001, relating to low- and moderate-income replacement
units that do not expressly provide for certain options available
under the provisions in effect until January 1, 2001, including
acquiring housing outside the project area under certain conditions,
aggregating new or substantially rehabilitated dwelling units in one
or more project areas, acquiring certain long-term affordability
covenants, and permitting certain sales of owner-occupied low- and
moderate-income units.
   This bill would extend the provisions that would be repealed on
January 1, 2001 to January 1, 2002, and would provide that the
alternate provisions relating to low- and moderate-income replacement
units are operative on January 1, 2002.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 33334.2 of the Health and Safety Code is
amended to read:
   33334.2.  (a) Not less than 20 percent of all taxes which are
allocated to the agency pursuant to Section 33670 shall be used by
the agency for the purposes of increasing, improving, and preserving
the community's supply of low- and moderate-income housing available
at affordable housing cost, as defined by Section 50052.5, to persons
and families of low or moderate income, as defined in Section 50093,
and very low income households, as defined in Section 50105, unless
one of the following findings is made annually by resolution:
   (1) (A) That no need exists in the community to improve, increase,
or preserve the supply of low- and moderate-income housing,
including housing for very low income households in a manner which
would benefit the project area and that this finding is consistent
with the housing element of the community's general plan required by
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code, including its share of the
regional housing needs of very low income households and persons and
families of low or moderate income.
   (B) This finding shall only be made if the housing element of the
community's general plan demonstrates that the community does not
have a need to improve, increase, or preserve the supply of low- and
moderate-income housing available at affordable housing cost to
persons and families of low or moderate income and to very low income
households.  This finding shall only be made if it is consistent
with the planning agency's annual report to the legislative body on
implementation of the housing element required by subdivision (b) of
Section 65400 of the Government Code.  No agency of a charter city
shall make this finding unless the planning agency submits the report
pursuant to subdivision (b) of Section 65400 of the Government Code.
  This finding shall not take effect until the agency has complied
with subdivision (b) of this section.
   (2) (A) That some stated percentage less than 20 percent of the
taxes which are allocated to the agency pursuant to Section 33670 is
sufficient to meet the housing needs of the community, including its
share of the regional housing needs of persons and families of low or
moderate income and very low income households, and that this
finding is consistent with the housing element of the community's
general plan required by Article 10.6 (commencing with Section 65580)
of Chapter 3 of Division 1 of Title 7 of the Government Code.
   (B) This finding shall only be made if the housing element of the
community's general plan demonstrates that a percentage of less than
20 percent will be sufficient to meet the community's need to
improve, increase, or preserve the supply of low- and moderate-income
housing available at affordable housing cost to persons and families
of low or moderate income and to very low income households.  This
finding shall only be made if it is consistent with the planning
agency's annual report to the legislative body on implementation of
the housing element required by subdivision (b) of Section 65400 of
the Government Code.  No agency of a charter city shall make this
finding unless the planning agency submits the report pursuant to
subdivision (b) of Section 65400 of the Government Code.  This
finding shall not take effect until the agency has complied with
subdivision (b) of this section.
   (C) For purposes of making the findings specified in this
paragraph and paragraph (1), the housing element of the general plan
of a city or county shall be current, shall have been submitted to
the Department of Housing and Community Development within the
applicable time period, and shall be in compliance with Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of Title 7
of the Government Code.
   (3) (A) That the community is making a substantial effort to meet
its existing and projected housing needs, including its share of the
regional housing needs, with respect to persons and families of low
and moderate income, particularly very low income households, as
identified in the housing element of the community's general plan
required by Article 10.6 (commencing with Section 65580) of Chapter 3
of Division 1 of Title 7 of the Government Code, and that this
effort, consisting of direct financial contributions of local funds
used to increase and improve the supply of housing affordable to
persons and families of low or moderate income and very low income
households, is equivalent in impact to the funds otherwise required
to be set aside pursuant to this section.  In addition to any other
local funds, these direct financial contributions may include federal
or state grants paid directly to a community and which the community
has the discretion of using for the purposes for which moneys in the
Low and Moderate Income Housing Fund may be used. The legislative
body shall consider the need which can be reasonably foreseen because
of displacement of persons and families of low or moderate income or
very low income households from within, or adjacent to, the project
area, because of increased employment opportunities, or because of
any other direct or indirect result of implementation of the
redevelopment plan.  No finding under this subdivision may be made
until the community has provided or ensured the availability of
replacement dwelling units as defined in Section 33411.2 and until it
has complied with the provisions of Article 9 (commencing with
Section 33410).
   (B) In making the determination that other financial contributions
are equivalent in impact pursuant to this subdivision, the agency
shall include only those financial contributions which are directly
related to programs or activities authorized under subdivision (e) of
this section.
   (C) The authority for making the finding specified in this
paragraph shall expire on June 30, 1993, except that the expiration
shall not be deemed to impair contractual obligations to bondholders
or private entities incurred prior to May 1, 1991, and made in
reliance on the provisions of this paragraph.  Agencies which make
this finding after June 30, 1993, shall show evidence that the agency
entered into the specific contractual obligation with the specific
intention of making a finding under this paragraph in order to
provide sufficient revenues to pay off the indebtedness.
   (b) Within 10 days following the making of a finding under either
paragraph (1) or (2) of subdivision (a), the agency shall send the
Department of Housing and Community Development a copy of the
finding, including the factual information supporting the finding and
other factual information in the housing element that demonstrates
that either (1) the community does not need to increase, improve, or
preserve the supply of housing for low- and moderate-income
households, including very low income households, or (2) a percentage
less than 20 percent will be sufficient to meet the community's need
to improve, increase, and preserve the supply of housing for low-
and moderate-income households, including very low income households.
  Within 10 days following the making of a finding under paragraph
(3) of subdivision (a), the agency shall send the Department of
Housing and Community Development a copy of the finding, including
the factual information supporting the finding that the community is
making a substantial effort to meet its existing and projected
housing needs.  Agencies which make this finding after June 30, 1993,
shall also submit evidence to the department of its contractual
obligations with bondholders or private entities incurred prior to
May 1, 1991, and made in reliance on this finding.
   (c) In any litigation to challenge or attack a finding made under
paragraph (1), (2), or (3) of subdivision (a), the burden shall be
upon the agency to establish that the finding is supported by
substantial evidence in light of the entire record before the agency.
  If an agency is determined by a court to have knowingly
misrepresented any material facts regarding the community's share of
its regional housing need for low- and moderate-income housing,
including very low income households, or the community's production
record in meeting its share of the regional housing need pursuant to
the report required by subdivision (b) of Section 65400 of the
Government Code, the agency shall be liable for all court costs and
plaintiff's attorney's fees, and shall be required to allocate not
less than 25 percent of the agency's tax increment revenues to its
Low and Moderate Income Housing Fund in each year thereafter.
   (d) Nothing in this section shall be construed as relieving any
other public entity or entity with the power of eminent domain of any
legal obligations for replacement or relocation housing arising out
of its activities.
   (e) In carrying out the purposes of this section, the agency may
exercise any or all of its powers, including the following:
   (1) Acquire real property or building sites subject to Section
33334.16.
   (2) Improve real property or building sites with onsite or offsite
improvements, but only if either (A) the improvements are made as
part of a program which results in the new construction or
rehabilitation of affordable housing units for low- or
moderate-income persons that are directly benefited by the
improvements or (B) the agency finds that the improvements are
necessary to eliminate a specific condition that jeopardizes the
health or safety of existing low- or moderate-income residents.
   (3) Donate real property to private or public persons or entities.

   (4) Finance insurance premiums pursuant to Section 33136.
   (5) Construct buildings or structures.
   (6) Acquire buildings or structures.
   (7) Rehabilitate buildings or structures.
   (8) Provide subsidies to, or for the benefit of, very low income
households, as defined by Section 50105, lower income households, as
defined by Section 50079.5, or persons and families of low or
moderate income, as defined by Section 50093, to the extent those
households cannot obtain housing at affordable costs on the open
market.  Housing units available on the open market are those units
developed without direct government subsidies.
   (9) Develop plans, pay principal and interest on bonds, loans,
advances, or other indebtedness, or pay financing or carrying
charges.
   (10) Maintain the community's supply of mobilehomes.
   (11) Preserve the availability to lower income households of
affordable housing units in housing developments which are assisted
or subsidized by public entities and which are threatened with
imminent conversion to market rates.
   (f) The agency may use these funds to meet, in whole or in part,
the replacement housing provisions in Section 33413.  However,
nothing in this section shall be construed as limiting in any way the
requirements of that section.
   (g) (1) The agency may use these funds inside or outside the
project area.  The agency may only use these funds outside the
project area upon a resolution of the agency and the legislative body
that the use will be of benefit to the project.  The determination
by the agency and the legislative body shall be final and conclusive
as to the issue of benefit to the project area.  The Legislature
finds and declares that the provision of replacement housing pursuant
to Section 33413 is always of benefit to a project.  Unless the
legislative body finds, before the redevelopment plan is adopted,
that the provision of low- and moderate-income housing outside the
project area will be of benefit to the project, the project area
shall include property suitable for low- and moderate-income housing.

   (2) (A) The Contra Costa County Redevelopment Agency may use these
funds anywhere within the unincorporated territory, or within the
incorporated limits of the City of Walnut Creek on sites contiguous
to the Pleasant Hill BART Station Area Redevelopment Project area.
The agency may only use these funds outside the project area upon a
resolution of the agency and board of supervisors determining that
the use will be of benefit to the project area.  In addition, the
agency may use these funds within the incorporated limits of the City
of Walnut Creek only if the agency and the board of supervisors find
all of the following:
   (i) Both the County of Contra Costa and the City of Walnut Creek
have adopted and are implementing complete and current housing
elements of their general plans that the Department of Housing and
Community Development has determined to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
   (ii) The development to be funded shall not result in any
residential displacement from the site where the development is to be
built.
   (iii) The development to be funded shall not be constructed in an
area that currently has more than 50 percent of its population
comprised of racial minorities or low-income families.
   (iv) The development to be funded shall allow construction of
affordable housing closer to a rapid transit station than could be
constructed in the unincorporated territory outside the Pleasant Hill
BART Station Area Redevelopment Project.
   (B) If the agency uses these funds within the incorporated limits
of the City of Walnut Creek, all of the following requirements shall
apply:
   (i) The funds shall be used only for the acquisition of land for,
and the design and construction of, the development of housing
containing units affordable to low- and moderate-income persons.
   (ii) If less than all the units in the development are affordable
to low- or moderate-income persons, any agency assistance shall not
exceed the amount needed to make the housing affordable to low- or
moderate-income persons.
   (iii) The units in the development that are affordable to low- or
moderate-income persons shall remain affordable for a period of at
least 55 years.
   (iv) The agency and the City of Walnut Creek shall determine, if
applicable, whether Article XXXIV of the California Constitution
permits the development.
   (h) The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
   (i) The requirements of this section shall only apply to taxes
allocated to a redevelopment agency for which a final redevelopment
plan is adopted on or after January 1, 1977, or for any area which is
added to a project by an amendment to a redevelopment plan, which
amendment is adopted on or after the effective date of this section.
An agency may, by resolution, elect to make all or part of the
requirements of this section applicable to any redevelopment project
for which a redevelopment plan was adopted prior to January 1, 1977,
subject to any indebtedness incurred prior to the election.
  SEC. 2.  Section 33413 of the Health and Safety Code, as amended by
Section 1 of Chapter 329 of the Statutes of 1996, is amended to
read:
   33413.  (a) Whenever dwelling units housing persons and families
of low or moderate income are destroyed or removed from the low- and
moderate-income housing market as part of a redevelopment project
that is subject to a written agreement with the agency or where
financial assistance has been provided by the agency, the agency
shall, within four years of the destruction or removal, rehabilitate,
develop, or construct, or cause to be rehabilitated, developed, or
constructed, for rental or sale to persons and families of low or
moderate income, an equal number of replacement dwelling units that
have an equal or greater number of bedrooms as those destroyed or
removed units at affordable housing costs within the territorial
jurisdiction of the agency.  When dwelling units are destroyed or
removed after September 1, 1989, 75 percent of the replacement
dwelling units shall replace dwelling units available at affordable
housing cost in the same income level of very low income households,
lower income households, and persons and families of low and moderate
income, as the persons displaced from those destroyed or removed
units.
   (b) (1) At least 30 percent of all new and substantially
rehabilitated dwelling units developed by an agency shall be
available at affordable housing cost to persons and families of low
or moderate income.  Not less than 50 percent of the dwelling units
required to be available at affordable housing cost to persons and
families of low or moderate income shall be available at affordable
housing cost to, and occupied by, very low income households.
   (2) (A) (i) At least 15 percent of all new and substantially
rehabilitated dwelling units developed within a project area under
the jurisdiction of an agency by public or private entities or
persons other than the agency shall be available at affordable
housing cost to persons and families of low or moderate income.  Not
less than 40 percent of the dwelling units required to be available
at affordable housing cost to persons and families of low or moderate
income shall be available at affordable housing cost to very low
income households.
   (ii) To satisfy the provisions of this paragraph, in whole or in
part, the agency may cause, by regulation or agreement, to be
available, at affordable housing costs, to persons and families of
low or moderate income or to very low income households, as
applicable, two units outside a project area for each unit that
otherwise would have had to be available inside a project area.
   (iii) As used in this paragraph and in paragraph (1),
"substantially rehabilitated dwelling units" means substantially
rehabilitated multifamily rented dwelling units with three or more
units or substantially rehabilitated, with agency assistance,
single-family dwelling units with one or two units.
   (iv) As used in this paragraph and in paragraph (1), "substantial
rehabilitation" means rehabilitation, the value of which constitutes
25 percent of the after rehabilitation value of the dwelling,
inclusive of the land value.
   (v) To satisfy the provisions of this paragraph, the agency may
aggregate new or substantially rehabilitated dwelling units in one or
more project areas, if the agency finds, based on substantial
evidence, after a public hearing, that the aggregation will not cause
or exacerbate racial, ethnic, or economic segregation.
   (B) To satisfy the requirements of paragraph (1) and subparagraph
(A), the agency may purchase, or otherwise acquire or cause by
regulation or agreement the purchase or other acquisition of,
long-term affordability covenants on multifamily units that restrict
the cost of renting or purchasing those units that either:  (i) are
not presently available at affordable housing cost to persons and
families of low or very low income households, as applicable; or (ii)
are units that are presently available at affordable housing cost to
this same group of persons or families, but are units that the
agency finds, based upon substantial evidence, after a public
hearing, cannot reasonably be expected to remain affordable to this
same group of persons or families.
   (C) To satisfy the requirements of paragraph (1) and subparagraph
(A), the long-term affordability covenants purchased or otherwise
acquired pursuant to subparagraph (B) shall be required to be
maintained on dwelling units at affordable housing cost for not less
than 30 years.  Not more than 50 percent of the units made available
pursuant to paragraph (1) and subparagraph (A) may be assisted
through the purchase or acquisition of long-term affordability
covenants pursuant to subparagraph (B).  Not less than 50 percent of
the units made available through the purchase or acquisition of
long-term affordability covenants pursuant to subparagraph (B) shall
be available at affordable housing cost to, and occupied by, very low
income households.
   (3) The requirements of this subdivision shall apply independently
of the requirements of subdivision (a).  The requirements of this
subdivision shall apply, in the aggregate, to housing made available
pursuant to paragraphs (1) and (2), respectively, and not to each
individual case of rehabilitation, development, or construction of
dwelling units, unless an agency determines otherwise.
   (4) Each redevelopment agency, as part of the implementation plan
required by Section 33490, shall adopt a plan to comply with the
requirements of this subdivision for each project area.  The plan
shall be consistent with, and may be included within, the community's
housing element.  The plan shall be reviewed and, if necessary,
amended at least every five years in conjunction with either the
housing element cycle or the plan implementation cycle.  The plan
shall ensure that the requirements of this subdivision are met every
10 years.  If the requirements of this subdivision are not met by the
end of each 10-year period, the agency shall meet these goals on an
annual basis until the requirements for the 10-year period are met.
If the agency has exceeded the requirements within the 10-year
period, the agency may count the units that exceed the requirement in
order to meet the requirements during the next 10-year period.  The
plan shall contain the contents required by paragraphs (2) and (3) of
subdivision (a) of Section 33490.
   (c) The agency shall require that the aggregate number of
replacement dwelling units and other dwelling units rehabilitated,
developed, constructed, or price-restricted pursuant to subdivision
(a) or (b) remain available at affordable housing cost to persons and
families of low-income, moderate-income, and very low income
households, respectively, for the longest feasible time, as
determined by the agency, but for not less than the period of the
land use controls established in the redevelopment plan, except for
the following:
   (1) A longer period of time may be required by other provisions of
law.
   (2) (A) The agency may permit sales of owner-occupied units prior
to the expiration of the period of the land use controls established
by the agency for a price in excess of that otherwise permitted under
this subdivision pursuant to an adopted program which protects the
agency's investment of moneys from the Low and Moderate Income
Housing Fund, including, but not limited to, an equity sharing
program that establishes a schedule of equity sharing that permits
retention by the seller of a portion of those excess proceeds, based
on the length of occupancy.  The remainder of the excess proceeds of
the sale shall be allocated to the agency, and deposited into the Low
and Moderate Income Housing Fund.  The agency shall, within three
years from the date of sale of units under this subparagraph, expend
funds to make affordable an equal number of units at the same income
level as units sold under this subparagraph.
   (B) If land on which those dwelling units are located is deleted
from the project area, the agency shall continue to require that
those units remain affordable as specified in this subdivision.  The
requirements of this subdivision shall be made enforceable in the
same manner as provided in subdivision (f) of Section 33334.3.
   (d) (1) This section applies only to redevelopment projects for
which a final redevelopment plan is adopted pursuant to Article 5
(commencing with Section 33360) on or after January 1, 1976, and to
areas that are added to a project area by amendment to a final
redevelopment plan adopted on or after January 1, 1976.  In addition,
subdivision (a) shall apply to any other redevelopment project with
respect to dwelling units destroyed or removed from the low- and
moderate-income housing market on or after January 1, 1996,
irrespective of the date of adoption of a final redevelopment plan or
an amendment to a final redevelopment plan adding areas to a project
area.  Additionally, any agency may, by resolution, elect to make
all or part of the requirements of this section applicable to any
redevelopment project of the agency for which the final redevelopment
plan was adopted prior to January 1, 1976.
   (2) An agency may, by resolution, elect to require that whenever
dwelling units housing persons or families of low or moderate income
are destroyed or removed from the low- and moderate-income housing
market as part of a redevelopment project, the agency shall replace
each dwelling unit with up to three replacement dwelling units
pursuant to subdivision (a).
   (e) Except as otherwise authorized by law, this section does not
authorize an agency to operate a rental housing development beyond
the period reasonably necessary to sell or lease the housing
development.
   (f) Notwithstanding subdivision (a), the agency may replace
destroyed or removed dwelling units with a fewer number of
replacement dwelling units if the replacement dwelling units meet
both of the following criteria:
   (1) The total number of bedrooms in the replacement dwelling units
equals or exceeds the number of bedrooms in the destroyed or removed
units.  Destroyed or removed units having one or no bedroom are
deemed for this purpose to have one bedroom.
   (2) The replacement units are affordable to the same income level
of households as the destroyed or removed units.
   (g) "Longest feasible time," as used in this section, includes,
but is not limited to, unlimited duration.
   (h) This section shall remain in effect only until January 1,
2002, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2002, deletes or extends
that date.
  SEC. 3.  Section 33413 of the Health and Safety Code, as amended by
Section 2 of Chapter 329 of the Statutes of 1996, is amended to
read:
   33413.  (a) Whenever dwelling units housing persons and families
of low or moderate income are destroyed or removed from the low- and
moderate-income housing market as part of a redevelopment project
which is subject to a written agreement with the agency or where
financial assistance has been provided by the agency, the agency
shall, within four years of the destruction or removal, rehabilitate,
develop, or construct, or cause to be rehabilitated, developed, or
constructed, for rental or sale to persons and families of low or
moderate income, an equal number of replacement dwelling units that
have an equal or greater number of bedrooms as those destroyed or
removed units at affordable housing cost within the territorial
jurisdiction of the agency.  When dwelling units are destroyed or
removed after September 1, 1989, 75 percent of the replacement
dwelling units shall replace dwelling units available at affordable
housing cost in                                            the same
income level of very low income households, lower income households,
and persons and families of low and moderate income, as the persons
displaced from those destroyed or removed units.
   (b) (1) At least 30 percent of all new or rehabilitated dwelling
units developed by an agency shall be available at affordable housing
cost to persons and families of low or moderate income.  Not less
than 50 percent of the dwelling units required to be available at
affordable housing cost to persons and families of low or moderate
income shall be available at affordable housing cost to, and occupied
by, very low income households.
   (2) At least 15 percent of all new or rehabilitated dwelling units
developed within the project area by public or private entities or
persons other than the agency shall be available at affordable
housing cost to persons and families of low or moderate income.  Not
less than 40 percent of the dwelling units required to be available
at affordable housing cost to persons and families of low or moderate
income shall be available at affordable housing cost to very low
income households.
   (3) The requirements of this subdivision shall apply independently
of the requirements of subdivision (a) and in the aggregate to
housing made available pursuant to paragraphs (1) and (2),
respectively, and not to each individual case of rehabilitation,
development, or construction of dwelling units.
   (4) Each redevelopment agency, as part of the implementation plan
required by Section 33490, shall adopt a plan to comply with the
requirements of this subdivision for each project area.  The plan
shall be consistent with, and may be included within, the community's
housing element.  The plan shall be reviewed and, if necessary,
amended at least every five years in conjunction with either the
housing element cycle or the plan implementation cycle.  The plan
shall ensure that the requirements of this subdivision are met every
10 years.  If the requirements of this subdivision are not met by the
end of each 10-year period, the agency shall meet these goals on an
annual basis until the requirements for the 10-year period are met.
If the agency has exceeded the requirements within the 10-year
period, the agency may count the units that exceed the requirement in
order to meet the requirements during the next 10-year period.  The
plan shall contain the contents required by paragraphs (2) and (3) of
subdivision (a) of Section 33490.
   (c) The agency shall require that the aggregate number of
replacement dwelling units and other dwelling units rehabilitated,
developed, or constructed pursuant to subdivision (a) or (b) remain
available at affordable housing cost to persons and families of
low-income, moderate-income, and very low income households,
respectively, for the longest feasible time, as determined by the
agency, but for not less than the period of the land use controls
established in the redevelopment plan, except to the extent a longer
period of time may be required by other provisions of law.  If land
on which those dwelling units are located is deleted from the project
area, the agency shall continue to require that those units remain
affordable as specified in the previous sentence.  These requirements
shall be made enforceable in the same manner as provided in
subdivision (e) of Section 33334.3.
   (d) (1) This section applies only to redevelopment projects for
which a final redevelopment plan is adopted pursuant to Article 5
(commencing with Section 33360) on or after January 1, 1976, and to
areas that are added to a project area by amendment to a final
redevelopment plan adopted on or after January 1, 1976.  In addition,
subdivision (a) shall apply to any other redevelopment project with
respect to dwelling units destroyed or removed from the low- and
moderate-income housing market on or after January 1, 1996,
irrespective of the date of adoption of a final redevelopment plan or
an amendment to a final redevelopment plan adding areas to a project
area.  Additionally, any agency may, by resolution, elect to make
all or part of the requirements of this section applicable to any
redevelopment project of the agency for which the final redevelopment
plan was adopted prior to January 1, 1976.
   (2) An agency may, by resolution, elect to require that whenever
dwelling units housing persons or families of low or moderate income
are destroyed or removed from the low- and moderate-income housing
market as part of a redevelopment project, the agency shall replace
each dwelling unit with up to three replacement dwelling units
pursuant to subdivision (a).
   (e) Except as otherwise authorized by law, this section does not
authorize an agency to operate a rental housing development beyond
the period reasonably necessary to sell or lease the housing
development.
   (f) Notwithstanding subdivision (a), the agency may replace
destroyed or removed dwelling units with a fewer number of
replacement dwelling units if the replacement dwelling units meet
both of the following criteria:
   (1) The total number of bedrooms in the replacement dwelling units
equal or exceed the number of bedrooms in the destroyed or removed
units.  Destroyed or removed units having one or no bedroom are
deemed for this purpose to have one bedroom.
   (2) The replacement units are affordable to the same income level
of households as the destroyed or removed units.
   (g) "Longest feasible time," as used in this section, includes,
but is not limited to, unlimited duration.
   (h) Any dwelling units constructed, rehabilitated, or acquired
prior to January 1, 1997, pursuant to provisions that were in effect
at the time of the construction, rehabilitation, or acquisition may
continue to be counted to meet the requirements of this section.
   (i) This section shall become operative on January 1, 2002.
